Here is an article placed by the BBC for ordinary people to read about what’s going on to finance their later life
It will come as a surprise to people inside the pension bubble that Kevin Peachey can write this as news. But he is right. For manypeople, what the payroll deduction marked “pension” means, is a mystery.
We like to think that people are engaged and many people are; but not everybody. Putting something away for a rainy day is not quite the same as providing for yourself for thirty years or more. I am very worried that we give people the impression they are being looked after by this pension deduction which means they are “saving for a rainy day”.
What Kevin Peachy points to is the deeply irresponsible attitude of those who think because it works for them, a freedom from pension and the building of a “rainy day” pot is good enough. It is not. Here is Kevin’s article on the BBC website this morning.
In a year, people will find that this rainy day pot is there to provide a replacement wage in their retirement. People will see their pot(s) turned to pension and positioned alongside the pension they get from the state.
We all know we are supposed to put something away for a rainy day, including our old age, it is just hard to find the money.
A recent report suggested more than three-quarters of workers are set to miss out on a moderate standard of living in later life.
But there is a simple check you can do now that could put you in a more comfortable financial position when you get older.
It will help make sure you don’t miss out on free money from your employer. You may even find out you are already saving for your retirement without realising it.
Most workers aged 22 and over, and earning more than £10,000 a year (or £192 a week; or £833 a month) should automatically see some of their wages transferred to pension savings.
If you’ve no idea whether that includes you, then experts say:
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the best way to check is by looking at the deductions on your wage slip
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if that’s confusing, then check with you HR department or whoever does the payroll at work
Usually, 5% of your salary will go into a pension savings pot (this is an additional pension pot, separate from what you’ll eventually receive in a state pension).
If you don’t put this money into a pension, it will be taxed, so you will lose some of it anyway.
Crucially, your employer will then add money into the pot, the equivalent of at least 3% of your wages.
This is money you can only access in retirement, so if money is really tight then you can opt out and have the money in your wages now.
But the more money saved and invested now, the more it will grow over time, data shows.
You can read more about this so-called automatic enrolment system on the independent MoneyHelper website, external.
Four things you need to know
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If you earn less than £10,000 a year, but more than £6,240 a year (£520 a month, or £120 a week), and you ask to join your work’s pension scheme, then your employer must put in some money too
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Women in particular would benefit from saving early, experts say, because they are more likely to take career breaks to care for kids or relatives as they get older
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If you have more than one job and all pay under £10,000 a year you will not be automatically enrolled into pension savings, so if you have multiple jobs it is worth looking hard at how to save for your retirement
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Under 22s are not currently part of the scheme. The government is considering lowering the starting age to 18, but says the extra cost to businesses need to be considered too
Difficult to observe what is happening from within but :-
The period leading up to 1848—often called the Vormärz or the “Hungry Forties”—was characterized by exactly what you describe: a ruling elite (Guizot’s bourgeoisie) using technology and legal frameworks to optimise capital, completely blind to the fact that they were turning the working and middle classes into a tinderbox.Jobs will be destroyed by AI especially in a service based economy. The UK should quickly engage with AI education as described by Microsoft leader in UK earlier today. Trustees and parents need to think which investments will thrive in this new technology world.